A federal judge has temporarily halted President Donald Trump’s plan to place 2,200 employees of the US Agency for International Development (USAID) on paid leave, just hours before the move was set to take effect.
Judge Carl Nichols issued a “limited” temporary restraining order following a last-minute lawsuit filed by two unions representing USAID workers. The order, which will remain in place until 14 February at midnight, prevents the administration from proceeding with the staff cuts.
In a separate case on Saturday, another federal judge blocked Elon Musk’s Department of Government Efficiency (Doge) from accessing Treasury Department records that include the personal financial data of millions of Americans.
Trump’s push to dismantle USAID
President Trump has long argued that USAID, which provides foreign aid and development assistance, is not a justifiable use of taxpayer money. His administration has taken steps to significantly reduce its workforce, placing nearly all of the agency’s 10,000 employees on leave, except for 611 essential personnel.
As part of this effort, 500 employees had already been placed on administrative leave, with another 2,200 set to join them at midnight on Friday (05:00 GMT). However, the unions filed a lawsuit, claiming that the administration’s actions violated the US Constitution and inflicted undue harm on employees.
Judge Nichols ruled in favour of the unions, citing “irreparable harm” to the workers, while stating that there was “zero harm to the government” in maintaining the current employment status. The ruling also reinstates the 500 employees who had already been placed on administrative leave and ensures that they regain access to email, payment systems, and security notifications.
A hearing scheduled for Wednesday will determine whether the temporary order should be extended further.
Uncertain future for USAID staff
While the restraining order provides temporary relief, the fate of the agency’s staff remains uncertain. As the ruling was being issued, USAID officials were seen removing and covering agency signs at their Washington DC headquarters. Additionally, the USAID website became inaccessible, displaying only a landing page referencing the personnel cuts.
USAID is the world’s largest foreign aid donor, with much of its budget directed towards global health initiatives. Approximately two-thirds of its 10,000 employees work overseas. The agency is one of several federal institutions targeted by the Trump administration as part of broader cost-cutting measures.
Elon Musk’s role in government overhaul
President Trump has made overhauling the federal government a key priority, creating the Department of Government Efficiency (Doge) to oversee budget reductions. The initiative, led by tech billionaire Elon Musk, has played a significant role in identifying agencies for cuts, including USAID.
The lawsuit against the administration was filed by the American Foreign Service Association and the American Federation of Government Employees, both of which represent USAID employees. In court, Trump-appointed Judge Nichols declined to grant additional requests, such as reinstating grants and contracts or reopening USAID buildings.
The unions argued that the president lacked congressional authorization to dismantle the agency, stating: “Not a single one of defendants’ actions to dismantle USAID were taken pursuant to congressional authorization. And pursuant to federal statute, Congress is the only entity that may lawfully dismantle the agency.”
Defending the administration, Justice Department official Brett Shumate claimed that Trump had identified “corruption and fraud” within USAID and was taking action accordingly.
Global impact of USAID cuts
Shortly after taking office on 20 January, Trump signed an executive order pausing all foreign assistance until funds were reviewed to align with his “America First” policy. This led to an immediate stop-work order at USAID, which operates health and emergency programmes in approximately 120 countries, including some of the world’s most impoverished regions.
Trump defended his actions on his Truth Social platform, writing: “USAID IS DRIVING THE RADICAL LEFT CRAZY. THE CORRUPTION IS AT LEVELS RARELY SEEN BEFORE. CLOSE IT DOWN!”
Former USAID Administrator Samantha Power, who served under President Joe Biden, criticised the move in a New York Times opinion piece, calling it “one of the worst and most costly foreign policy blunders in US history.”
USAID’s budget of $40 billion accounts for approximately 0.6% of the US government’s total annual spending of $6.75 trillion. The head of the United Nations’ programme for tackling HIV/AIDS warned that the agency’s cuts could have dire consequences. “AIDS-related deaths in the next five years will increase by 6.3 million” if funding is not restored, said UNAIDS Executive Director Winnie Byanyima.
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Legal challenges against government efficiency department
In a separate legal battle, 19 state attorneys general have sued the Trump administration over Doge’s access to Treasury Department records containing Americans’ personal financial data. The plaintiffs argue that allowing Musk, a “special government employee,” and Doge, which is not an official government agency, to handle sensitive information violates federal law.
Early on Saturday, U.S. District Judge Paul A. Engelmayer issued a preliminary injunction blocking Doge from accessing the data and ordered Musk and his team to immediately destroy any copies of records obtained. The injunction will remain in place until the next court hearing on 14 February.
With multiple legal challenges mounting, the fate of USAID and the Trump administration’s broader cost-cutting measures remain uncertain. The coming weeks will likely determine the scope of the president’s authority in reshaping federal agencies and their missions.
